foreign currency market Archives - Iran News Daily

Dollar Rate in Iranian Market Falls Significantly

reporter 1222 — Wed, 22 Jul 2020 05:24:49 +0000

TEHRAN (Iran News) – The rate of US dollar in the Iranian market witnessed a significant drop of 200,000 rials on Tuesday, to continue its declining trend for the second consecutive day.

The same kept happening to the euro’s rate for the second successive day, which fell by 150,000 rials on Tuesday, to be sold at 236,000 rials in the foreign currency market, IRNA reported.

On Tuesday, official currency exchanges sold and purchased each US dollar at 206,000 rials and 199,000 rials respectively.

According to sanarate.ir, an information website belonging to the Central Bank of Iran (CBI) announcing the rate of foreign currencies in the domestic market, the rates of the dollar and euro had declined by 150,000 rials and 170,000 rials on Monday to stand at 229,160 rials and 253,360 rials, respectively.

Over the past few days, prior to the start of the downward trend, the rates of the two major currencies had kept soaring, reaching record highs.

The rate of the rial began its declining trend in May 2018, when the US withdrew from the Joint Comprehensive Plan of Action, signed between Iran and the P5+1 in July 2015, and the reimposition of Washington’s unilateral sanctions on Tehran. Mainly targeting Iran’s foreign trade, including oil exports, and the banking sector, the sanctions have been imposed in a bid to cripple the Iranian economy, a pipe dream pursued by the US and its allies, including Israel, which never came true.

Iranian officials maintain that in addition to the unilateral sanctions, psychological factors also led to the increase in foreign currency rates over the past days.

In an address to a press conference on Tuesday, Ali Rabiei, the Iranian government’s spokesman, blamed psychological manipulation of public opinion by ill-wishers on social media and abroad for the rise in the rates, according to mehrnews.com.

He said such bids lead to an anticipation of inflation in the domestic market.

Rabiei added that among the reasons for the drop in the rates is that Iranians have stopped heeding such activities and propaganda.

“Our foreign currency income will definitely increase in the light of our oil exports and the injection of forex revenues into the domestic economy. The real foreign currency rates are definitely lower than what we see in the market today.”

He stressed, “During the past two weeks, Iranian President Hassan Rouhani and CBI Governor Abdolnaser Hemmati explicitly announced that the increasing trend of forex rates would not continue, and the reason is clear. The realities of our market, as well as the balance between supply and demand, show that the increase in rates is not real.”

He added Iranian exporters are increasing their injection of foreign currency income into the country’s secondary foreign exchange market, known by the local acronym Nima (Integrated Forex Deals System), thus tilting the balance in favor of the supply side of the domestic market.

Rabiee said this comes as the government has also controlled the demand side by boosting domestic production.

“Stimulating domestic production will not only reduce domestic demand for foreign currency resources but will also help further increase the country’s output and reduce the price of other products.”

He noted that the government’s diplomatic moves in the field of foreign policy have also helped provide the country with better access to foreign currency resources, expressing hope that Iran’s exports would grow with the easing of restrictions imposed on trade between regional countries due to the coronavirus outbreak.

The pandemic has led to the closure of border crossings between Iran and its neighbors and, thus, reduced exports from the country.

The post Dollar Rate in Iranian Market Falls Significantly appeared first on Iran News Daily.

Rouhani stresses on forex rates control

reporter 1222 — Wed, 20 May 2020 05:08:55 +0000

TEHRAN (Iran News) – Iranian President Hassan Rouhani on Tuesday stressed the need to control the foreign exchange (forex) rates and prevent their hikes.

Speaking in the 137th session of the Government’s Economic Coordination Headquarters, Rouhani called on the economic organizations and banking system to coordinate the affairs to control the forex rates.

The president urged the officials to give top priority to basic goods, medicines, equipment, and raw materials needed by the production sector while allocating foreign exchange.

During the meeting, the topics mainly revolved around the factors playing effective roles in boosting production and exports leading to the increase of foreign currency reserves.

The ministries of energy, communications and information technology, and the Central Bank of Iran was tasked with following up digital currency extraction and making the necessary plans.

Given the problems in the global economy and providing foreign exchange, the ways of reimbursement of forex loans granted by the National Development Fund to investors in the electricity industry were reviewed.

In the first stage, the sector was given two more years to repay the loan, the officials decided to further discuss the issue at expert-level commissions and inform the government of its outcome.

The Ministry of Industry, Mine and Trade, Oil Ministry, and Planning and Budget Organization (PBO) was urged to continuously monitor exports, foreign exchange, and trade policies, remove barriers, and provide the necessary facilities for exporters.

The top officials also exchanged views on diversifying import and export methods and strengthening export structures and policies.

The post Rouhani stresses on forex rates control appeared first on Iran News Daily.

CBI vows to drive foreign exchange market towards stability

reporter 1222 — Tue, 19 May 2020 05:38:40 +0000

TEHRAN (Iran News) – The Central Bank of Iran (CBI) is taking serious steps to establish stability in the market, said its Governor Abdolnaser Hemmati in an Instagram post on Monday.

Stating that the current situation of the markets in the country is not more complicated than in August and September last year, the official said, “In those days, as the US sanctions were intensifying, the foreign exchange markets were severely disrupted and the dollar rate in the market reached very high levels,” IRNA quoted Hemmati saying.

But with the CBI management and the measures taken, despite all the problems over the past two years, the relative stability of markets was retained and the country registered positive economic growth at the end of the previous Iranian calendar year (March 19), the chief banker said.

He also said that the current turbulence in the market is a result of the coronavirus outbreak which causes the three-month shutdown of many economic activities in the country and also the reduction of oil prices as well as the continuous pressures of the US sanctions.

“The situation is difficult, but it is improving and can be managed and stabilized,” Hemmati added.

The post CBI vows to drive foreign exchange market towards stability appeared first on Iran News Daily.

‘All necessary measures taken to launch organized forex market’

reporter 1222 — Wed, 22 May 2019 07:01:24 +0000

Answering to the questions of the reporters on the sidelines of the 85th meeting between the ministry and Iran Chamber of Commerce, Industry, Mine and Agriculture (ICCIMA) as the representative of the country’s private sector, Farhad Dejpasand said the ministry have done all legal actions to this end and just the affairs related to the company (which is to be set up for such market) are being performed.

On May 10, the minister had said that an organized forex market will be launched in the country in the coming week.

Dejpasand said the mentioned market is due to set the real foreign currency exchange rates.

Establishment of this market has been approved by the Money and Credit Council (MCC), the highest banking policy-making body of the Central Bank of Iran (CBI), on January 8 as the CBI aims to explore the real volume of demand and supply in the foreign currency market through a new mechanism.

Regarding this market, a CBI official said on May 5 that the new mechanism aims to organize the transactions in the foreign currency exchange market between the exchange shops, Mehr news agency reported.

The post ‘All necessary measures taken to launch organized forex market’ appeared first on Iran News Daily.